Blake Morgan has played a central role in the conclusion of Wales’s first-ever Private Finance Initiative (PFI) project, the landmark Bute Avenue regeneration scheme in Cardiff.
The law firm advised the Cardiff Bay Development Corporation and, thereafter, the Welsh Government throughout the project’s lifespan, from its inception in 1997 through to its successful handback in December 2025, a period spanning nearly three decades.
The Bute Avenue PFI project was a transformative infrastructure initiative that regenerated Cardiff Bay and involved the design, construction, and 25-year maintenance of Bute Avenue (now Lloyd George Avenue), the arterial route connecting Cardiff Bay to the city centre, paving the way for later developments. The PFI formally expired in December 2025, with the infrastructure handed back to Cardiff County Council, marking one of the first PFI handbacks in Wales and among the earliest in the wider UK.
Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning, said:
“The Bute Avenue PFI has played a defining role in Cardiff’s transformation over the past three decades, and I am grateful to all those, including Blake Morgan, whose expertise and dedication have helped bring this landmark project to a successful close.
“It helped pave the way for the investment, jobs and opportunities that have followed, laying the foundations for the next chapter of Cardiff Bay’s development, including phase one of Cardiff Crossrail, the new arena and wider regeneration of Atlantic Wharf.”
Tomos Lewis, Partner at Blake Morgan, added:
“The handback process was complex, involving multiple parties and a range of legal, contractual and property matters that had accumulated over a quarter of a century. Our team’s longstanding familiarity with the project and our expertise in PFI arrangements meant we were well placed to advise the Welsh Government through each stage of that process.
“We are grateful to the Welsh Government and all those involved for their trust in Blake Morgan throughout the life of this landmark project, and we look forward to supporting public sector clients across Wales as they navigate similar challenges in the years ahead.”
Blake Morgan (formerly Morgan Cole) was appointed to advise the Cardiff Bay Development Corporation on the formation of and entry into the original PFI agreement in 1997. As the project evolved, the firm continued to advise successive public bodies, including the Welsh Development Agency and the Welsh Government, which, in turn, assumed the rights and obligations of the original corporation throughout the PFI’s lifespan.
Alongside the core PFI advisory work, Blake Morgan also advised the Welsh Government over many years on several property transactions linked to the PFI, supporting the Welsh Government’s wider strategy to develop the south of Callaghan Square and facilitate the proposed Metro connections from central Cardiff to Cardiff Bay.
In the final stages of the PFI, Blake Morgan advised the Welsh Government on the handback arrangements throughout 2024 and 2025. This included advising on the full range of legal work required to bring the arrangement to a close, including deeds of variation to the project and highways agreements to accommodate other major infrastructure projects such as the South Wales Metro, handback inspections and condition reports, and agreements discharging Welsh Government, ProjectCo and subcontractors’ maintenance and handback obligations.
James Egan, Real Estate Partner at Blake Morgan, said:
“Our involvement with Bute Avenue extended well beyond the core PFI agreement. Over the years, we supported the Welsh Government on several property transactions linked to the project and its surrounding area, helping to shape the longer-term vision for Callaghan Square and the Metro infrastructure that will benefit Cardiff for generations to come. It has been a privilege to contribute to that legacy.”
The successful handback of the Bute Avenue PFI closely follows the recent handback of the Chepstow Community Hospital to Aneurin Bevan Local Health Board, for which Blake Morgan also advised the Health Board.
Several public bodies will be approaching similar end-of-contract arrangements in the years ahead. Blake Morgan’s deep institutional knowledge of PFI handback arrangements means the firm is uniquely positioned to navigate the legal complexities of PFI infrastructure handbacks.
